1:3 Practical Training Policy To Benefit 100,000 Local Students - KESUMA

PUTRAJAYA, Jan 15 (Bernama) -- The Ministry of Human Resources (KESUMA), in collaboration with Talent Corporation Malaysia Bhd (TalentCorp), will roll out the 1:3 Internship Policy, an initiative designed to benefit 100,000 local students.

In a statement today, KESUMA said the policy will be introduced in phases, beginning with a pilot phase from Feb 15 to Dec 31 this year, before its full implementation on Jan 1 2026.

“This new policy requires companies employing expatriates in Malaysia to provide structured industrial training placements for students from higher education institutions (IPT) nationwide,” read the statement.

The initiative aims to optimise expatriates’ contributions to Malaysia’s development by offering structured and meaningful training opportunities to local talent. This approach will equip students to meet the demands of an evolving industry and prepare them for future challenges.

Participating companies stand to benefit from tax relief incentives under the National Structured Internship Programme (MySIP), fostering a collaborative effort to nurture and train local talent in an increasingly competitive job market.

To ensure effective implementation, companies applying for an Expatriate Employment Pass (EP) through the Malaysia Expatriate Service Centre (MYXpats) and the Malaysia Digital Economy Corporation (MDEC) will be required to provide up to three paid, structured industrial training placements for local students. These placements will follow a ratio of 1 expatriate to 3 industrial trainees.

KESUMA highlighted that this ratio is adaptable, with considerations for the size and workforce capacity of individual organisations to ensure fairness and practicality.

The policy will only take effect after EP approval has been granted, ensuring that it does not interfere with existing expatriate employment processes.

Companies complying with the policy will receive priority for future EP applications, providing an added incentive for participation.

To support implementation, the policy is designed to be cost-neutral and will be facilitated by KESUMA’s Practical Training Incentive (ILHAM) ecosystem. This platform will streamline the process for companies offering structured industrial training placements, ensuring seamless integration into their operations.

The 1:3 Internship Policy will be implemented through MySIP, supported by HRD Corp’s Industrial Training Scheme incentives and the ILHAM KESUMA platform, which assists employers in meeting the policy requirements.

According to KESUMA, the number of industrial training placements required depends on the EP category.

Companies with EP I approvals must provide three training placements for each pass, while those with EP II approvals must offer two placements, and EP III approvals will require one placement.

The policy also includes a cap to ensure feasibility. If the required ratio of training placements exceeds two per cent of a company’s total workforce, the minimum requirement will be capped at two per cent of the workforce.

During the pilot phase starting on Feb 15, the policy will apply only to companies under EP categories I and II. This phased approach aims to ensure its effectiveness and smooth implementation before the full rollout.

KESUMA emphasised that TalentCorp, as the lead coordinator, will work closely with higher education institutions, Technical and Vocational Education and Training (TVET) providers, industry players, international chambers of commerce, and relevant associations to ensure the policy’s successful implementation.

The initiative aligns with the three pillars of the MADANI Economic Framework – Sustainability, Prosperity, and Innovation. It supports economic growth, job creation, and the development of a competitive and innovative local workforce.

The policy aims to empower local talent through structured, paid, and high-quality industrial training opportunities, fostering active industry participation in national development efforts.

For further details on the 1:3 Internship Policy, visit www.talentcorp.com.my/1to3policy.

-- BERNAMA